Our CECL Impact Analysis product was designed to give our bank clients a quick and easy way to estimate the Allowance impact of the upcoming CECL changes. We take a standard regulatory loan file of a bank’s full portfolio and combine it with that bank’s NCO and risk migration history or our loss index data. We then run a CECL discounted cash flow model developed based on the material FASB has published to date. The result is an estimate of the CECL loss by product type, at the loan level, for the full life of the loan. We then compare this to the existing ALLL calculation.
We have developed significant expertise around CECL. We have authored a number of papers to help banks get ready for this change:
CRMa’s staff was very knowledgeable of the CECL guidance and requirements and their CECL estimate provided us with critical information to use to begin preparing for the implementation of this new guidance.
SVP Risk Management Officer
Troy Bank & Trust